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Contingency Fees Explained: How Lawyers Get Paid Without You Paying First


What Is a Contingency Fee?

Most personal injury lawyers work on a contingency fee basis, meaning they only get paid if they win your case. If the case is lost, the lawyer receives no payment and does not get reimbursed for expenses or fees.

This fee structure is client-friendly because:

  • You don’t have to pay anything upfront.
  • The lawyer is motivated to resolve your case efficiently.
  • Legal services become accessible to people who may not afford hourly billing.

Standard Fee Percentages

Typical contingency fees in personal injury cases are:

  • 33⅓% (or one-third) of your settlement or verdict.
  • Some firms charge 40% right from the beginning, which may not be in your best interest.

At Griffith Law:

  • The fee is 33⅓% if settled before trial.
  • If the case goes to trial, the fee increases to 40% due to the significant time, effort, and resources required to prepare and argue in court.

Trials often lead to better outcomes, and the higher fee is usually justified by a much larger payout to the client.

Why Trials Can Be More Valuable

  • Going to trial involves intense preparation — often 18-hour days and time away from family.
  • Insurance companies generally undervalue claims, offering less than what a jury might award.
  • A higher verdict at trial often results in a much larger take-home payout, even after legal fees.

Red Flags to Watch for When Hiring a Personal Injury Lawyer

  1. Lawyers Who Make You Pay Your Own Case Expenses
    If a lawyer asks you to pay upfront for court costs or other case expenses, it could indicate financial instability or a lack of commitment.
  2. “Jack of All Trades” Lawyers
    Be cautious of attorneys who handle many types of cases (e.g., real estate, criminal, probate, and personal injury).
    You want a dedicated personal injury specialist who:
  • Understands current case law.
  • Knows local rules and statutes.
  • Focuses solely on injury claims.

John Griffith emphasizes that at Griffith Law, they do only personal injury law — and do it exceedingly well.

When You May Not Need a Lawyer

Not every case requires legal representation. You may be able to handle your claim on your own if:

  • Your treatment lasted only a few weeks.
  • There were no aggravating factors (e.g., DUI by the other driver).
  • You made a full recovery without ongoing issues.

In such cases, hiring a lawyer might not be worth the cost or the time. John Griffith even offers guidance to help people handle these claims themselves.

When a Lawyer Can Add Real Value

If you have a permanent injury — even without surgery — a lawyer can significantly increase your net take-home. Insurance companies typically do not factor in the long-term impact of permanent injuries, even though they claim to.

Permanent injury is generally defined as chronic pain or disability lasting six months or longer. These cases often result in higher verdicts, even for soft tissue damage. GriffithLaw has obtained $200,000–$300,000 verdicts in such cases.

How Lawyer Fees Can Affect Your Settlement

Some lawyers charge 40% from the beginning, even if the case settles quickly. For example, if your case is worth $100,000 and you’re charged 40%, you lose $6,000 more than if your lawyer charged the industry-standard one-third.

Griffith Law charges 33⅓% for most settlements, helping clients retain more of their compensation.

Arbitration Clauses: Another Red Flag

Watch out for law firm contracts that require arbitration if you disagree with how they handle your case. Some large firms insert arbitration clauses that:

  • Waive your right to a jury trial if you want to sue your lawyer.
  • Limit your legal options and potential compensation.
  • Shield the lawyer from accountability.

John Griffith finds this practice hypocritical — especially when these same firms market themselves as champions of jury trials for their clients.

Always read contracts carefully and ask the firm to remove arbitration clauses if you see one.

Final Thoughts

Choosing the right personal injury lawyer can make a significant difference in your financial recovery and legal experience. Avoid red flags like:

  • Upfront charges for expenses.
  • Lawyers who handle multiple practice areas.
  • High contingency fees without trial.
  • Arbitration clauses that limit your rights.

FREE
CONSULTATIONS

NASHVILLE | FRANKLIN | MURFREESBORO | CLARKSVILLE

John
Griffith

Tennessee Injury Lawyers

How Our Experienced Tennessee Injury Lawyers Can Help You

If you’ve been hurt in a crash, don’t go it alone. You deserve a legal team that will treat you like family and fight like hell on your behalf. At GriffithLaw, our experienced Injury Attorneys are ready to help you every step of the way.

???? Call (615) 823-8233 now or complete our online form for a free consultation. We’re available 24/7 and ready to take your call.

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